Housing minister Kris Hopkins has announced that up to 4,300 affordable homes will be developed across the UK using fresh funding following an agreement with the European Investment Bank (EIB).
The funds will significantly boost the supply of much needed affordable homes by housing associations across the country.
"The deal with the European Investment Bank is a vote of confidence in our ongoing efforts to restore confidence to our housing market and get Britain building," said Hopkins.
In the region of £500m will be provided as a result of the deal and will now form part of the £3.5bn Affordable Housing Guarantees programme, which is available to housing associations seeking to develop affordable homes.
Hopkins added: "This £500m investment will help deliver up to 4,300 new affordable homes across the country, on top of the 170,000 affordable homes we've already delivered since 2010."
So far eight housing associations have been selected to receive funding through Affordable Housing Guarantee which will result in thousands of new low-cost homes being developed nationwide, including almost 900 properties in Devon and Cornwall, 674 residential units in Hampshire and Surrey along with just over 250 affordable homes in Wales.
Affordable homes will also be built in Greater London and the South East, the North, Manchester, Lancashire, across South and East England.